Unconsolidated Annual Report 2004 (PAS) adjustment

Polski Koncern Naftowy ORLEN S.A. (“PKN ORLEN”, “Company”) Central Europe’s largest downstream oil company hereby announces that the standalone report for the year 2004 which was published on 31 March 2005, has been adjusted. Due to information concerning anti-trust proceedings, which was received by the Company in last days of March 2005, the Company supplements the yearly report with the information about current anti-trust proceedings in the note 45e of Financial Statements. Taking above into consideration, the note 45e has been changed as follows:

Preliminary statement of the auditor
The information presented below concerns anti-trust proceedings, in which the Company is the participant. This information was added to the financial statements after the issue of the auditor’s opinion and it was not subject to an audit.

Anti-trust proceedings
As at the date of the preparation of the report the Company was subject to two anti-trust proceedings. According to the decision of the Chairman of the Office for Protection of Competition and Consumer (“OPCC”) from 21 March 2005 anti-trust proceeding was started in connection with a suspicion that PKN ORLEN S.A. in Plock concluded an agreement with the Grupa Lotos S.A. in Gdansk which limited competition on the domestic sale market of gasoline Universal 95 through an unanimous decision to give up production and distribution of gasoline Universal 95 and eliminating the competition on the domestic sale market of gasoline Universal 95 as well as excluding the risk of take-over the market by the competition. Presently PKN ORLEN S.A. is preparing documents required by OPCC. Taking into account the fact that the proceedings concerning an agreement concluded between PKN ORLEN S.A. and the Grupa Lotos S.A. on giving up production of gasoline Universal 95 is in very initial phase there is no reason to present this liability as a contingent liability and create a provision in the Company’s balance sheet. On 21 March 2005 the Company received a letter in which the Chairman of OPCC asked to be provided with an information concerning the market of monoethylene glycols and “Petrygo” radiator liquid in years 2000-2004. The letter concerns the proceedings in the area of setting prices for antifreeze liquid to radiators „Petrygo” and prices for monoethylene glycols. In these proceedings OPCC issued a decision imposing penalty in the amount of PLN 40m. The Company appealed to Anti-Trust Court against the negative decision of OPCC. On 13 August 2001 the Anti-Trust Court annulled fully the decision of OPCC, which accused PKN ORLEN of applying monopolistic practice, annulling at the same time the cash penalty, in 2001 due to this fact the provision was fully released. OPCC applied on 4 October 2001 to the Supreme Court to annul the verdict. On 10 July 2003 the Supreme Court investigated the application of OPCC to annul the verdict of the District Court from 13 August 2001. The case was conducted again by District Court in Warsaw and Anti-Trust Court, which on the hearing on 21 July 2004 pronounced the judgment again revoking the decision of OPCC . Due to the received letter presently PKN ORLEN S.A. is preparing documents required by OPCC. These financial statements do not include provisions relating to the above proceeding as in the opinion of the Management Board of PKN ORLEN based on an independent legal opinion charging the Company with an obligation to pay the cash penalty is unlikely.